The CAG while auditing HSIIDC observed that the valuation of the property which was to be developed for recreation and leisure activities in Gurgaon was misleading
The Comptroller and Auditor General of India (CAG) on Monday criticised the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) for selling land at undervalued rate to real estate giant DLF. DLF bought the land for setting up a recreational project in Gurgaon which led to a financial loss of Rs438.91 crore.
In its latest report on Haryana’s PSUs for the year 2011-12, CAG while auditing HSIIDC observed that the valuation of the property which was to be developed for recreation and leisure activities in Gurgaon was misleading.
ILFS Infrastructure Development Corporation, which was appointed as a consultant for assessment of land cost (in March 2008), valued the land cost by using a mixed approach which means multiplying average market rate of land with average District Collector (DC) rate.
“The value of property was worked out at Rs1,683.58 crore (by the consultant) whereas the valuation of the property by considering average factors of 2.79 times for residential area and 3.105 times for commercial plots works out to Rs2,142.11 crore,” the CAG pointed out.
However, HSIIDC approved the reserve price at Rs1,700 crore for bidding on the basis of the consultant’s valuation while the government accepted the DLF’s bid at Rs1,703.20 crore.
“HSIIDC by accepting the consultant valuation without any analysis and study suffered a loss of Rs438.91 crore,” the CAG noted.
The high-level Board of Trade, an advisory body of the commerce ministry, is scheduled to meet on 22nd March to review India’s export performance in the wake of uncertain economic conditions in Western markets
The government may announce concessions for sectors such as engineering and carpets in the forthcoming Foreign Trade Policy (FTP) to provide them a cushion against the global slowdown.
“We can expect more measures in the FTP. We are working on the FTP,” commerce and industry minister Anand Sharma informed the media.
During the April-February period, exports declined by 4% to $ 265.95 billion. Sectors like engineering and textiles are registering negative growth. These segments are likely to get some sops in the FTP.
Sharma said that the commerce ministry is in consultation with all the stakeholders including industry chambers for the policy.
The high-level Board of Trade (BOT) chaired by Sharma is scheduled to meet on 22nd March to review India’s export performance in the wake of uncertain economic conditions in Western markets. The BoT is an advisory body of the commerce ministry.
“We had two rounds of consultation with the CII and FICCI. Now, we would have another round of consultation with exports council and FIEO. We will wrap up the consultation process and then start working to get the final shape to the FTP,” he said.
According to sources, exporters are likely to get benefits under focus product and focus market scheme. Special Economic Zones, which contribute about 30% in the country’s overall exports, are also expected to get incentives.
The incentives would help in boosting exports and bridging the widening trade deficit, which has touched $ 182.1 billion in the 11-month period of the fiscal.
Last time, in December 2012, the government had announced incentives for exporters that include extension of 2% interest subsidy for one more year till March 2014.
Sharma had also introduced a pilot scheme of 2% interest subsidy for project exports through Exim Bank.
Despite the sops, it would be difficult to achieve the $ 360 billion export target for this fiscal. The country's overseas shipments are likely to be below $ 300 billion.
In 2011-12, exports aggregated $ 307 billion.
Moneylife Foundation, as the voice of 21,500 savers, has sent a memorandum to the RBI, pointing out why this move is premature, ill-conceived, impractical and hugely detrimental to the interests of consumers